Ripple has won a lawsuit. What does this mean?
As a reminder, at the end of 2020, the SEC filed a lawsuit against Ripple and its two executives, Brad Garlinghouse and Chris Larsen, alleging that the company offered unregistered securities that did not comply with regulations. This event marked the beginning of a lengthy legal battle.
After 3 years, Ripple has finally won the lawsuit against the SEC, but it’s not as simple as it seems!
The judge has officially recognized that XRP is not a security. The token reacted with a 70% price increase! Additionally, the judge stated that crypto tokens sold in a public sale cannot be considered securities.
This is a significant event for the crypto industry, and many speculate that it could mark the beginning of a bullish market. This case sets a precedent, and as we remember, SEC recently labeled many tokens as securities.
The XRP case will serve as a reference in the Binance case and other tokens.
Now, projects have much more flexibility in token distribution because they won’t have legal issues during the issuance. They can conduct token sales and raise more funds or come up with something entirely new.
However, it’s not all sunshine and rainbows. Ripple violated federal laws on securities by directly selling the cryptocurrency XRP to experienced investors. These SEC claims may be considered separately.
❕What will happen now with Layer Zero and other major projects? Only time will tell, but it’s possible that this event could put an end to retroactive regulation, and all the thousands of dollars we’ve spent could go down the drain. What are your thoughts on this matter?
